L.A. mayor backs deal for promoters to cover municipal costs of Labor Day music fest in Grand Park

Live Nation, producer of Made in America, a two-day music festival slated to take place Aug. 30-31 at Grand Park in downtown Los Angeles, is offering to pay $850,000 to cover city and county costs related to the event.

The concert promoter and hip-hop mogul Jay Z have announced a lineup of alternative, hip-hop and dance music, including Imagine Dragons and John Mayer.

More than 30 bands will be spread over several stages at Grand Park over the Labor Day weekend, with some activities spilling onto City Hall's steps, plazas and lawns.

Under a proposed contract being considered by the City Council, Live Nation would be billed a flat $500,000 for "services" provided in connection with the concert. Under a 2009 law, the city requires recovery of all of its costs related to a special event.

Live Nation would also pay $350,000 to the county for its separate costs, according to a city document. The city and county jointly operate the park, with programming, security and upkeep handled by the Music Center.

We're very confident that the resources allocated will be plenty to provide a good experience for all concerned.— Jeff Millman, spokesman for Mayor Eric Garcetti

Jeff Millman, a spokesman for Los Angeles Mayor Eric Garcetti, said the costs include police and fire protection and shifts worked by public works and other city workers assigned to the event. The county's portion would cover the cost of assigning sheriff's deputies, he said.

In addition to the $850,000, Live Nation has agreed to pay for any damage to the landscaping at Grand Park, Millman said. Garcetti is asking the council to approve a flat rate for city services, he said, because the promoter accepted that provision.

"We're very confident that the resources allocated will be plenty to provide a good experience for all concerned," Millman said.

Philadelphia has hosted two Made in America festivals. In 2012, an economic impact report put out by Philadelphia Mayor Michael Nutter estimated that the two-day festival generated at least $10 million for the city's economy and that the promoters had covered the $505,000 in municipal costs.

When the L.A. dates were announced in April, some downtown residents and business owners expressed concerns about traffic tie-ups and the city's ability to manage an expected crowd of at least 50,000.

But in a joint appearance with Jay Z, Garcetti assured residents that the city could handle the logistics. He emphasized the potential economic boon to downtown hotels, bars and restaurants over the Labor Day weekend.

Millman sounded a similar theme Wednesday, saying the city would not only reap economic benefits but offer an attraction that many residents would enjoy.